Project Analysis and

Management

MBA Program

By: Dr. Meseret M.

2
 Chapter outline

• Definition of a project
• Differences between project and programme
• Classification/Type of projects
• Project participants/key stakeholders of a
project
• Role of Projects
• Project management
• Project management knowledge areas
 Definition of Project
 The word Project comes from the Latin word
Projectum, which means "something that
comes before anything else happens’’.

 A project is a unique set of coordinated

activities, with definite starting & finishing
points, undertaken to meet specific objectives
within defined schedule, cost and performance
parameters (Albert Lester)
 Cont......

A Project is a unique endeavor to

produce a set of deliverables with in
clearly specified time, cost and quality
constraints.
Jason Westland

A project is a temporary endeavor, having a

defined beginning & end, undertaken to meet
unique goals and objectives, usually to bring
about beneficial change or added value.
 Cont......

A deliverable is any unique and verifiable product,

result, or capability to perform a service that must
be produced to complete a process, phase, or
project.
 Project is a plan for arranging, coordinating,
supervision, monitoring and completion of various
activities related to a final objective.
 Cont......

 A project is different from operations of an

organization in which operations are
continuing and repetitive activities
Examples of projects include:
Developing a new product or service.
Effecting a change in structure, staffing, or style of an
organization.
Designing a new transportation vehicle.
Constructing a building or facility.
Building a water system for a community.
Project Characteristics
 Project Characteristics
Aims/Tasks:
Projects are designed to achieve specific
targets defined in terms of aims, tasks or a
purpose.
Once the objectives are achieved, the project
is treated as completed.
Definite time limit:
A project has a definite time limit. It can not
continue forever.
 ...Characteristics Cont’d
Uniqueness:
The principal identifying characteristics of a
project is its novelty.
It is a step into the unknown, fraught with risk and
uncertainty.
Commitment of Scarce Resources:
The resources required for completing a project
are man, material, money and time.
The nature of resources is that they are limited
and scarce.
 ...Characteristics Cont’d
Team Work:
A project normally consists of diverse areas.
Any project calls for the services of experts
from a host of disciplines.
Co-ordination among the diverse areas calls
for team work.
It involves risk
 Differences between Project and Program
• A project is an investment activity where resources are used
to create capital assets which produces benefits overtime and
has a beginning and an ending with specific objectives, while
a program is an ongoing development effort or plan.
• A program is therefore a wider concept than a project.
• It may include one or several projects at various time, with
specific objectives linked to the achievement of higher level
of common objective
• e.g a health program may include a water project, as well
as construction of a health center both aimed at
improving the health of a given community which
previously lacked easy access to these essential facilities.
 Differences between Project and Program
• Projects which are not linked with others to form a program
are sometimes reffered to as stand alone projects.
• A project to built a feeder road from an interior agricultural
district to a district headquarter may qualify to be a stand
alone project.
• A program designed to improve health of the community
will comprise the following projects: rural clean water
supply project, health center construction project, pit latrine
construction project and sanitary education project.
• During the project life, management should focus attention
to three parameters: QUALITY, COST and TIME.
 Differences between Project and Program

• A successfully managed project is one that is

completed at a specified time, quality delivered on or
before the deadline, and within the budget.
• In addition, client satisfaction will indicate success
and possibility of replication or sustainability.
• Each of this parameters is specified in details during
the planning phase of the project. This specification
then forms the basis for evaluating the project during
the implementation phase.
 Classification of projects
Projects are classified according to the specific
character of the project.
a) Projects of different sectors
 Projects can be classified according to the
sector to which the project owner belongs.
 Public Sector Projects: owned by government &
Profit- motive plays a secondary role
 Projects of Private Sectors: owned by
individuals or company where profit-motive
against investment plays an important role.
 Non-Government Organizations Projects: not-
for-profit entities
 Classification....
b. Need-based projects
 Integrating: backward & forward integration
 Modernization: technical up gradation
 Expansion: to increase the volume of production
 Diversification: to introduce new product
 Rehabilitation/reconstruction: rehabilitate an
organization which is already considered sick
 Balancing: to increase the production capacity of a
particular area
 Classification.......
It is convenient to classify projects under four main headings .

I. Civil engineering, Construction, Petrochemical,

Mining and Quarrying Projects
 The fulfillment phase must be conducted on a
site that is exposed to the elements
 They often require massive capital investment .
 A wide range of specialized professional and
trade skills might be needed.
II. Manufacturing Projects: aim at the production
 III. Management Projects

These are projects that arise when companies

 relocate their headquarters,
 develop and introduce a new computer system,
 prepare for a trade exhibition,
 restructure the organization,
 engage in any operation that involves the
management and coordination of activities to
produce an end result that is not identifiable
principally as an item of hardware or construction.
IV. Research projects
 Projects for pure research can consume vast
sums of money, last for many years and result
in a dramatically profitable discovery.
 They can result in a complete waste of money
and resources invested.
 Research projects carry the highest risk
because they are attempting to extend the
boundaries of current knowledge.
 Key Stakeholders of a project
Key stakeholders who are directly linked to most
projects are;
Project manager:
The project manager has primary responsibility for
the quality of a project's deliverables and its
successful completion.
Project managers can have the responsibility of the
planning, execution, and closing of any project and
ensuring that the project is successfully completed on
time and within budget.
Key project management responsibilities include
creating clear and attainable project objectives,
building the project requirements, and managing the
triple constraint for projects, which is cost, time, and
scope.
  Project sponsor:
The project sponsor can be a public or private entity
and should have the influence to ensure that the
project has sufficient priority to enable success.
The sponsor is also responsible for providing the
funding and staffing resources to complete the
project successfully.
The project sponsor usually represents the recipient
of the project’s end result.
The user:
 The user is the person or organization using
the product/service of the project.
 End users are responsible for ensuring that
their needs are expressed and for verifying
that a completed project meets those
expressed needs.
The contractor:
 typically builds a unique project in a very
competitive environment.
 Performing organization:
The enterprise whose employees are most
directly involved in the work of the project.
 The project team members:
The group that is performing the work of
project
Role of Projects in National Development

The main beneficiaries of projects include

employees, the government, customers, neighbors,
suppliers, micro, small, and medium enterprises, and
others.
 through increased employment.
 community that provide input supplies to these
companies, also stand to benefit from increased
demand for their products.
 The government also benefits from projects.
 Cont…
 Projects were expected to provide new goods
or services.
 Projects contribute to the development of
financial markets and other areas in
expanding services.
 Competitors often have to respond by
improving their own services; which in turn
further benefits customers.
 In most projects approved, customers/users
stand to benefit from higher quality
products/services.
 Cont…
 Society at large is the main beneficiary of
infrastructure projects.
 Generally, projects provide incentives and
innovations for mitigation, and to transfer
technology, knowledge and resources.
 PROJECT MANAGEMENT
 Project management is the planning, monitoring
and control of all aspects of a project and the
motivation of all those involved in it, in order to
achieve the project objectives within agreed
criteria of time, cost and performance.
 Project management refers to the administration
of the project, its supervision and organization.
 It means analyzing the objectives of the project,
defining the tasks needed to achieve these
objectives and controlling the execution.
 Pro. mgt....
• The PMBOK definition of project management
is “. . . application of knowledge, skills, tools
and techniques to project activities to achieve
project requirements”.
• Project management is accomplished through
the application and integration of the project
management processes of initiating, planning,
executing, monitoring and controlling, and
closing”
 Project Management Knowledge Areas

a. Project Integration Management

 Integrates the three main project mgt processes of
planning, execution & control
b. Project Scope Management
 Includes the processes required to ensure that the
project includes all the work required, and only the
work required, to complete the project successfully.
 It consists of authorization, scope planning, scope
definition, scope change mgt & scope verification.
 Knowledge...........
c. Project Time Management
 The processes required to ensure timely completion of the
project.
 It consists of activity definition, activity sequencing, activity
duration estimating, schedule development & schedule
control
d. Project Cost Management
 The processes required to ensure that the project is completed
within the approved budget.
 It consists of resource planning, cost estimating, cost
budgeting, & cost control.
 Knowledge......
e. Project Quality Management
 The processes required to ensure that the project will satisfy the
needs for which it was undertaken.
 It consists determining the required condition, quality planning,
quality assurance & quality control

f. Project Human Resource Management

 The processes required to make the most effective use of the
people involved with the project.
 It consists of organizational planning, staff acquisition & team
development
 Knowledge......
g. Project Communications Management
 required to ensure timely and appropriate
generation, collection, dissemination, storage, and
ultimate disposition of project information.
 It consists of communications planning,
information distribution, performance reporting &
administrative closure
 Knowledge......
h. Project Risk Management
 process of identifying, analyzing, and responding
to project risk.
 It includes risk management planning, risk
identification, qualitative risk analysis,
quantitative risk analysis, risk response
planning & risk monitoring and control
 Knowledge......
i. Project Procurement Management
 to acquire goods and services to attain project scope
from outside the performing organization.
 It consists of procurement planning, solicitation
planning, solicitation, source selection, contract
administration & contract closeout.
 Knowledge......
The body of knowledge can be subdivided into
four core elements which determine the deliverable
objectives of the project:
 Quality/Performance
 Cost
 Time
 Scope
 Knowledge......
• PMI illustrates project quality through the
concept of the triple constraint—project scope,
time and cost.
• Project quality is affected by balancing these
three interrelated factors.
• The relationship among these factors is such
that if any one of the three factors change, at
least one other factor is likely to be affected.
 Knowledge......
The other knowledge areas provide the means of
achieving the deliverable objectives, namely:
 Integration
 Human resource
 Communication
 Risk
 Procurement and contract
 Reasons for Project Success/Failure
• We can define project success as the completion of
an activity within the constraints of time, cost, and
performance.
• Today, the definition of project success has been
modified to include completion:
• Within the allocated time period
• Within the budgeted cost
• At the proper performance or specification level
• With acceptance by the customer/user
Reasons for Project Success/Failure
• When you can use the customer's name as a
reference
• With minimum or mutually agreed upon scope
changes
• Without disturbing the main work flow of the
organization
• Without changing the corporate culture
 Reasons for Project Success/Failure
• How Can Project Failure be Measured? THE CHAOS
Report:
• Resolution Type 1 is a “Project Success” 
• It completed on time and budget, with all features and
functions as specified
• Resolution Type 2 is “Project Challenged.”
• These were completed, but were over cost, over time,
and/or lacking all of the features and functions that
were originally specified.   
• Resolution Type 3 is termed “Project Impaired/
Failed.”  
• These projects were abandoned or cancelled at some
point and thus became total losses.  
 Reasons…
• Some of the most common causes of project
failure:
• Poorly defined project scope
• Inadequate risk management
• Failure to identify key assumptions
• Project managers who lack experience and
training
• No use of formal methods and strategies
• Lack of effective communication at all levels
• Key staff leaving the project and/or company
Reasons…
• Poor management of expectations
• Ineffective leadership
• Lack of detailed documentation
• Failure to track requirements
• Failure to track progress
• Lack of detail in the project plans
• Inaccurate time and effort estimates
• Cultural differences in global projects
Chapter End!